| By this time in 2007 it should be clear to just about | | | | 327 data breaches totalling 48.8 million records. That's |
| everyone that identity theft is a real and growing | | | | over 100 million records of various types of personal |
| problem throughout the world, but especially here in the | | | | information floating around. As a result an entire black |
| United States where there is so much affluence (and | | | | market industry has developed for these stolen |
| of course available credit). The Federal Trade | | | | records. This worldwide criminal identity theft |
| Commission reports that for the 5th year in a row | | | | marketplace is mature and is very structured. The |
| identity theft topped the list of consumer complaints. In | | | | players come from all over the world, but most of the |
| this article we will explore what identity theft is, how it | | | | Web sites where they meet are run from computer |
| is most commonly perpetrated, and how big of a | | | | servers offshore or overseas, with many in the former |
| threat it really is to the average consumer. | | | | Soviet Union, making them difficult to police. Credit |
| Credit Card Fraud versus Identity Theft | | | | cards, bank account numbers, Social Security numbers, |
| When someone illegally obtains your credit card | | | | and other personal data are commonly traded and |
| information and uses it then that is credit card fraud. It | | | | sold in huge numbers. There are buyers and sellers, |
| is not identity theft in the purest sense but when the | | | | intermediaries, service industries, and even tutorials. |
| government estimates the number of identity theft | | | | The Next Big Threat? |
| victims and the financial impact of identity theft it | | | | And the assault is continuing. Gary Miliefsky, a founding |
| generally includes this number. The term most | | | | member of the U.S. Department of Homeland Security |
| commonly used now is Identity Fraud which broadens | | | | and chief technology officer of network security firm |
| the scope to include credit card fraud. In 2006 the total | | | | NetClarity, stated that Malware (an umbrella term used |
| estimated cost of identity fraud was $56.6 billion, up | | | | to a variety of hostile in intrusive program codes) |
| from $54.4 billion in 2005. Credit card fraud accounts | | | | attacks on personal computers are increasing at an |
| for approximately 26% of identity theft. The balance | | | | unprecedented rate by organized criminals. "Malware |
| of identity theft is comprised mostly of new account | | | | writers are attacking your computer like they never |
| identity theft, where your personal information is | | | | have before," says Miliefsky. "Plain viruses are declining, |
| compromised to the point where the thief is able to | | | | and new attacks are taking advantage of a hole in an |
| establish new accounts (bank, credit card, utilities) in | | | | operating system or browser to plant Trojan viruses. |
| your name. This type of theft can have a devastating | | | | As the business of online identity theft has continued |
| effect on an individual's life and can take years and | | | | to grow: malware is now an $8 billion industry, |
| thousands of dollars to clean up and restore your | | | | according to the FBI. |
| good name. Some individuals never recover from this | | | | Preventing Identity Theft |
| type of identity theft. | | | | Currently the average consumer has a 1 in 7 chance |
| Identity Theft Thieves | | | | of becoming an identity theft victim. Identity theft |
| Most people think of identity theft thieves as individuals | | | | thieves are attacking us on multiple fronts in their |
| or small groups working together, digging through trash | | | | unrelenting quest for our personal information. Our |
| or stealing mail. While these are legitimate methods | | | | trash cans are being rifled through, our mail is being |
| used by thieves, there is also a much broader identity | | | | taken, corporate computers are being hacked and |
| theft market that get little media attention. And that is | | | | now even our own personal computers are under |
| from computer data breaches. The amount of | | | | attack. The task of insuring the safety of our personal |
| personal information compromised from computer | | | | information should not be taken lightly. A method of |
| breaches in this country over the last two years is | | | | tracking and monitoring your credit is crucial to insure |
| staggering. In 2005 there were 151 major data | | | | that no one can create a personal financial and credit |
| breaches potentially compromising the personal | | | | disaster through identity theft. |
| information of 57.7 million individuals. In 2006 there were | | | | |